FINDEP's 1Q15 Net Income of Ps.60.1 million, marks 9th consecutive quarter of consistent profitability[1]
MEXICO CITY, April 23, 2015 /PRNewswire/ --
- Loan Portfolio of Ps.6,909.0 million, a 3.1% increase YoY, consistent with the Company's current strategic focus of prioritizing loan portfolio quality and profitability over size.
- NPL Ratio of 6.9%, well below the industry's average and the Company's full year target of 7.5%.
- NIM2 After Provisions including fees was 49.7% in 1Q15, a 273 bps decrease versus 1Q14.
- Net Income of Ps.60.1 million, representing the 9th consecutive quarter of consistent profitability.
- The Average Effective Lending Rate decreased by 172 bps to 69.0% in 1Q15 versus 1Q14. The Average Funding Cost decreased by 143 bps to 9.28% during the same period.
- Equity to Total Assets of 32.4%, a 133 bps improvement versus 1Q14.
- ROAE in 1Q15 was 6.7%, versus 12.8% in 1Q14.
Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (BMV: FINDEP); (OTC: FNCRY), ("FINDEP" or the "Company") a leading Mexican microfinance lender of personal loans to lower income segment individuals and working capital loans through group lending microfinance, announces results for the three-months period ended March 31st, 2015.
| Financial & Operational Highlights |
|||
| 1Q15 |
1Q14 |
% |
|
| Income Statement Data |
|||
| Net Interest Income after Provisions* |
714.1 |
746.4 |
-4.3% |
| Net Operating Income (Loss)* |
88.1 |
136.8 |
-35.6% |
| Net Income (Loss)* |
60.1 |
100.7 |
-40.3% |
| Total Shares Outstanding (million) |
715.9 |
715.9 |
0.0% |
| Earnings (Loss) Per Share |
0.0840 |
0.1407 |
-40.3% |
| Profitability & Efficiency |
|||
| NIM before Provisions Excl. Fees |
56.4% |
55.9% |
0.5 pp |
| NIM after Provisions Excl. Fees |
38.4% |
40.9% |
-2.5 pp |
| NIM after Provisions Incl. Fees |
49.7% |
52.5% |
-2.7 pp |
| ROA |
2.2% |
3.9% |
-1.8 pp |
| ROE |
6.7% |
12.8% |
-6.1 pp |
| Efficiency Ratio Incl. Provisions |
90.5% |
85.7% |
4.8 pp |
| Efficiency Ratio Excl. Provisions |
66.4% |
66.6% |
-0.2 pp |
| Operating Efficiency |
30.0% |
31.9% |
-1.9 pp |
| Fee Income |
14.2% |
13.1% |
1.1 pp |
| Capitalization |
|||
| Equity to Total Assets |
32.4% |
31.1% |
1.3 pp |
| Credit Quality Ratios |
|||
| NPL Ratio |
6.9% |
6.3% |
0.6 pp |
| Coverage Ratio |
100.0% |
100.0% |
0 pp |
| Operational Data |
|||
| Number of Clients |
1,069,133 |
1,119,228 |
-4.5% |
| Number of Offices |
571 |
561 |
1.8% |
| Total Loan Portfolio* |
6,909.0 |
6,700.9 |
3.1% |
| Average Balance (Ps.) |
6,462.2 |
5,987.0 |
7.9% |
| * Figures in millions of Mexican Pesos. |
Commenting on the results, Noel Gonzalez, Executive Vice President and Group CEO, said, "In 1Q15 Financiera Independencia again delivered solid quarterly results consistent with its current strategic focus of prioritizing loan portfolio quality and profitability over size. Unfortunately, a weak economic environment prevails in our 2 largest markets, Mexico and Brazil, -which concentrate over 93% of the Group's total loan portfolio. Thus, the disciplined application of the Company's new operating policies continues to be of the upmost importance to deliver on our quality and profitability objectives.
The Company's Loan Portfolio grew by 3.1% with positive contributions from all subsidiaries, except Finsol Brazil. It is worth noting, however, that without considering the temporarily weak performance of Brazil, Financiera Independencia's loan portfolio would have grown by 6.5% YoY; its fastest growth pace since the implementation of the new strategic focus in September 2012.
All in all, the Company delivered solid quarterly results, including:
- Net Interest Margin before Provisions and Fees of 56.4%, a 48 bps increase YoY
- Net Income of Ps.60.1 million, representing the 9th consecutive quarter of consistent profitability
- NPL Ratio of 6.9%, a 56 bps increase YoY but still well below the Company's 7.5% full year target, and
- Stronger Capitalization Ratio of 32.4%, a 133 bps YoY growth."
1Q15 EARNINGS CONFERENCE CALL
| Day: |
Friday April 24th, 2015 |
| Time: |
11:00 AM US EDT; 10:00 AM Mexico City time |
| Dial-in number: |
888-5870615 (US & Canada) |
| 719-325-2215 (International & Mexico) |
|
| Access Code: |
8987097 |
| Web cast: |
A live web cast of the conference call and replay will be available at www.findep.mx |
| Replay: |
Starting at 2:00 pm EDT on April 24th and ending at 11:59 pm EDT on May 1st, 2015. The replay will be accessible by dialing 877-870-5176 (U.S./Canada) or 858-384-5517 (international) and entering pass code 8987097. |
About Financiera Independencia:
Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R. (FINDEP), is a Mexican microfinance lender of personal loans to individuals and working capital loans through group lending microfinance. FINDEP provides microcredit loans on an unsecured basis to individuals in the low-income segments in Mexico in urban and rural areas of both the formal and self-employed economy. As of March 31st, 2015, FINDEP had a total outstanding loan balance of Ps.6,909.0 million, operated 571 offices in Mexico, Brazil, and the US and had a total labor force of 11,433 people. The Company listed on the Mexican Stock Exchange on November 1, 2007, where it trades under the symbol "FINDEP". On November 30, 2009 FINDEP launched a sponsored Level I American Depositary Receipt (ADR) program in the United States. Each ADR represents 15 shares of FINDEP common stock and trades over-the-counter (OTC). More information can be found at www.findep.mx
Some of the statements contained in this press release discuss future expectations or state other forward-looking information. Those statements are subject to risks identified in this press release and in FINDEP's filings with the Mexican Stock Exchange. Actual developments could differ significantly from those contemplated in these forward-looking statements. The forward-looking information is based on various factors and was derived using numerous assumptions. Our forward-looking statements speak only as of the date they are made and, except as may be required by applicable law, we do not have an obligation to update or revise them, whether as a result of new information, future or otherwise.
To obtain the full text of this earnings release, please visit our Investor Relations website at www.findep.mx under the Financial Information / Quarterly Reports section.
1All financial figures discussed in this earnings release are audited and prepared in accordance with Mexican Banking Accounting Principles unless stated otherwise. / Figures for 2015 and 2014 are expressed in nominal pesos. / Tables state figures in millions of pesos, unless otherwise noted. / FINDEP: refers to Financiera Independencia and all of its subsidiaries / Independencia: refers to operations excluding Finsol, AEF and AFI.
2 NIM: Net Interest Income for the quarter annualized / Average Productive Assets (Cash & Equivalents + Loan Portfolio) for the current and previous quarters
SOURCE Financiera Independencia, S.A.B. de C.V., SOFOM, E.N.R.
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